By Drew Johnson
Wednesday, Jul 11th, 2012 @ 12:13 pm
 
EU competition regulators are investigating whether Porsche's $640 million project to build the upcoming Macan SUV at the automaker's Leipzig plant broke EU state aid rules. The probe comes just days after Volkswagen announced plans to purchase the Stuttgart-based sports car maker.

As a result of that high-profile merger, the European Commission will investigate whether state aid given to Porsche gave the German automaker an unfair advantage.

"The Commission will check whether the aid is necessary and proportionate to provide an incentive for the investment and whether its contribution to regional development outweighs the distortion of competition," the EU regulator said in a statement.

According to Automotive News, German authorities have pledged 43.67 million euros ($53.5 million) to support the production of the Macan at Porsche's Leipzig plant. Porsche says it will continue to move forward with Macan production even if the EU rejects some or all of the aid money.

"The construction work has already started and if the grant is not approved, we will pay for it ourselves," Hans-Gerd Bode, a spokesman for Porsche AG, said.

Porsche is expected to begin production of the Macan in late 2013 or early 2014.